QI Tech Acquires Brazilian Stockbroker Singulare

Published 5 months ago

QI Tech, a Brazilian fintech specializing in infrastructure for financial services, is set to acquire 100% of Singulare, a leading Brazilian stockbroker. The companies did not disclose the value or detailed terms of the transaction. The acquisition requires approval from the Central Bank and the Administrative Council of Economic Defense (Cade).

Strengthening QI Tech’s Business

The acquisition will bolster QI Tech’s recently launched ‘DTVM as a service’ business unit. The fintech was authorized by the Securities and Exchange Commission (CVM) and Anbima to operate as a Distribuidora de Valores e Valores (DTVM) four months ago, making it the first credit fintech in Brazil to be licensed as a broker.

Pedro Mac Dowell, CEO of QI Tech, expressed that the acquisition would provide necessary strength in knowledge and technology to their promising market. The two companies had been partners prior to the acquisition.

Financial Performance of Singulare

In the first half of this year, Singulare reported net revenues of R$128.2 million, a 2.2% increase from the same period in 2022. The company’s Ebitda increased by 31% to R$ 50 million, while net profit rose 27.3% to R$ 27.8 million. Singulare’s CEO, Álvaro Augusto de Freitas Vidigal, predicts R$ 300 million in revenues by year-end and possibly up to R$ 360 million next year.

Future Plans

The completion of the transaction depends on approval from Cade and the Central Bank. Both structures will continue independently until then. The Singulare brand will likely be retained, but the decision will be discussed in the coming days.

The companies plan to combine forces, maintain staff, and uphold structures after approval. QI Tech currently employs around 116 people, and Singulare has about 300 employees.

QI Tech’s Growth and Future Acquisitions

QI Tech, founded in 2018, currently operates with four business units and serves over 300 companies. The fintech has recently raised R$1 billion (US$200 million) in a funding round led by General Atlantic and expects to finalize further deals in the next 12 months.

Market Competition

The market for banking and financial infrastructure is becoming increasingly competitive with companies like Celcoin and Aarin actively expanding their businesses. In the technology infrastructure for capital markets, new players such as Vórtx, Kanastra, and Bamboo are emerging.

Singulare, formerly known as Socopa, split from Banco Paulista three years ago and underwent corporate restructuring. The company manages and custodies more than 600 funds, with around R$ 97 billion under its responsibility.